Vodafone Group Public Limited Company (NASDAQ:VOD) Q2 2024 Results Conference Call November 14, 2023 5:00 AM ET
Company Participants
Margherita Della Valle - Chief Executive Officer
Luka Mucic - Chief Financial Officer
Conference Call Participants
Maurice Patrick - Barclays Bank
Polo Tang - UBS Investment Bank
James Ratzer - New Street Research
David Wright - BofA Securities
Ottavio Adorisio - Societe Generale
Georgios Ierodiaconou - Citigroup Inc
Akhil Dattani - JPMorgan
Jakob Bluestone - BNP Paribas Exane
Andrew Lee - Goldman Sachs Group
Margherita Della Valle
Good morning, everyone, and thank you for joining us for our half year results conference call. I’m pleased to be joined today by Luka, our new CFO. Welcome, Luka.
Luka Mucic
Thanks a lot, Margherita, and great to be with all of you this morning.
Margherita Della Valle
Now since I have been CEO, I have said that Vodafone must change, and we are changing. Vodafone must change, and we are changing. As you know, my priorities are to focus on our customers, become a simpler business and accelerate growth. To set us on this path, we have taken significant actions over the last six-months.
First of all, on customers. We have reprioritized our focus and resources on customer experience and start to see some results. In [ALF 1] (Ph), our NPS position relative to competitors improved in almost all markets.
Second, simplicity. We have just completed an end-to-end review of our shared operations and the services they provide to the markets. We will now transition to a commercial model with clear MSAs, volume-based pricing for all services. And yesterday, we announced an agreement with Accenture that will allow us to accelerate this transformation.
Last, but not least, growth. We returned to service revenue growth in Germany this quarter, supported by our commercial model reengineering and our broader broadband price actions. Beyond Germany, we have delivered a broad-based improvement in service revenue in Q2 with 14 of 17 markets growing, and we have reiterated our financial guidance for the year.
In May, I said we would focus our investments on markets where we see the right combination of sustainable market structures and sufficient scale to grow and to deliver returns above our cost of capital and take actions where these conditions are not met.
As a result, we have announced our exit from Spain. In the U.K., we are progressing with approvals for our merger with Three, and we are continuing to explore a range of options in Italy.